Report
Patrick Artus

What level for the German 10-year interest rate in five years?

The German 10-year interest rate is currently - 0.67 %; financial markets expect it will be -0. 2 1% in five years.  What will the trend in the euro-zone 10-year interest rate in the next five years depend on ? The organisation of labour markets in euro-zone countries; it seems that employees’ bargaining power is being somewhat restored ; The functioning of goods and services markets in the euro zone; could the level of product sophistication be improved , restoring companies’ pricing power? Currently, that is not yet the case; The ECB's behaviour: will it change its objective if inflation remains lower than the 2% inflation target? Will it keep interest rates at zero? The supply-demand equilibrium for government bonds: population ageing could lead to a decline in private sector savings; will the European budgetary rules become less stringent?
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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